Investors' Soapbox AM

Are Packaged Foods Damaged Goods?

Credit Suisse says the sector's valuation multiples are stretched.

August 19, 2013

Credit Suisse

Year-to-date, the packaged-food industry has done an excellent job of holding prices and gross margin steady despite weak consumer-spending patterns and occasional flare-ups of competitive intensity. Three data points today support the bull case on the sector (and the lofty valuations) that gross margins will continue to expand...